HOW RICH PEOPLE THINK – STEVE SIEBOLD BOOK REVIEW
This is the second book I read about this author (the other is 177 mental toughness secrets of the world class) and I most say that I really like this author.
This book is all about what’s the difference between ultra rich people and the rest of the people. The author argues that the main difference lies in the level of thinking that generates wealth and once someone learns to think like wealthy people, their earning potential is limitless.
The middle class focus on investing. The elite focus on creating value.
The middle class is driven by the fear of loss and by the uncertainty of the future. The middle class focus on how to save and protect their money. On the other hand, the world-class focus on accumulating wealth by solving problems and delivering value to people. The world class understands the importance of saving, but their focus is almost entirely on how to solve problems.
The world-class operates from an abundance mindset whereas the middle-class operates from a scarcity mindset. The world’s richest people are not afraid to take risk because they know that this world is full of resources. They know that if they lose everything, they would be able to re-gain everything back.
The middle-class thinks that they have to trade their time to get money. Wealthy people generate money by solving complex problems instead of trading their time. Since there is no limit to ideas, there is also no limit to how much money they can earn.
Just think about it; if hard work was really the secret to financial success, every construction worker out there would be extremely rich. Yes, most rich people work really hard but they also WORK SMART. I’m not saying that construction worker are not smart. What I’m saying is that rich people created a system that gives them leverage, that gives them the opportunity to scale up quickly and make A LOT of money.
“People with leverage have dominance over people with less leverage. In other words, just as humans gained advantages over animals by creating leveraged tools, similarly, humans who use these tools of leverage have more power over humans that do not. Saying it more simply, ‘leverage is power’.” — Robert Kiyosaki
While the middle-class is buying lottery tickets and praying for prosperity, rich people are solving people’s problems and making a lot of money. While the middle class is being passive watching television, rich people are thinking and working to solve problems.
Getting rich is just the process of trading solutions for money.
MIDDLE CLASS BELIEVES MONEY IS NEGATIVE… WORLD CLASS BELIEVES MONEY IS POSITIVE
The middle class has the tendency to perceive money and rich people as negative. On the other hand, rich people see money as a tool with the power to create freedom and opportunity for themselves and their families. Rich people know that money=freedom.
I always find it funny how some people seems to think that money is the root of all evil. I know a lot of people like this…They say stuff like
“All of these rich people could change the world if they wanted to. It’s a shame that they are not doing it. They are greedy.”
I always find it funny because it they actually read books and good newspapers instead of watching reality TV, they would be aware that most rich people give A LOT of money to charities every year. Without them, a lot of these charities would not even survive. Also, these rich people became rich FOR A REASON. They actually created something of value to get that money. People complaining rarely produced anything of value in their life.
The bottom line is this: if these people are not happy about how the rich spend their money, why don’t they start their own company, become a billionaire and then spend their money like they want to? The truth is, these people are passive and they have absolutely no idea what they are talking about.
Do they think poor people care about their good intentions? Poor people want money! If the people complaining about the rich REALLY wanted to help the poor, they would become rich also and give all of their money to the poor…
Most rich people give more money every year in taxes than what most middle class person will give in their LIFETIME.
MIDDLE CLASS BELIEVES THE ROAD TO RICHES IS PAVED WITH FORMAL EDUCATION… WORLD CLASS BELIEVES THE ROAD TO RICHES IS PAVED WITH SPECIFIC KNOWLEDGE
I went to university to get a bachelor degree in business and let me tell you, what a bunch of crap. It really seemed to me like if these professors really had no idea what they were talking about. Actually, when you think about it it makes sense. Why would this guy (the teacher) work as a teacher for $100 000 instead of creating his own company and make millions if he truly knew what to do?
While the middle class makes simple problems seem complex, the world class makes complex problems seem simple.
I’ve talked to a few MBA’s in my life and maybe I just wasn’t lucky, but to me it seemed like these people were not really street smart. I had the feeling they wanted to make everything so complex, so difficult. They always wanted to analyze the data for hours if not weeks…The problem with the school system is they are trying to sell you the idea that making money is complicated. The more they make it sound complicated, the more YOU NEED to attend their school to get the knowledge.
Anyways…Just remember this: the more people who benefit from your ideas, the more abundance you will receive in return. General knowledge is good, but to really make a lot of money what you need is SPECIFIC knowledge in a specialized field. The value you can provide to other people, the more they will pay you.
MIDDLE CLASS IS WAITING TO BE RESCUED FROM FINANCIAL MEDIOCRITY… WORLD CLASS KNOWS NO ONE IS COMING TO THE RESCUE
The middle class is passive when it comes to money. They are in a passive state of mind instead of a proactive state of mind. Hell, they are not just passive with money, but with everything in their life ; relationships, their health, etc.
This is one of the reason why rich people sometimes seems to have it all. They are PROACTIVE. They actually set goals and are going after them aggressively. OF COURSE they will get results. The middle class sees the end results and assumes that they got lucky, but the truth is most rich people out-worked them.
This proactive state of mind is also the key to happiness. Happiness comes from progress and it is really hard to progress with a passive state of mind. Rich people are often happier than the middle class not just because of the money (Up to a certain amount of money, more money doesn’t increase happiness), but because they set goals for themselves and they work hard to achieve it. Because of all of this hard work, they progress and this is what makes them happy.
MIDDLE CLASS DREAMS OF HAVING ENOUGH MONEY TO RETIRE… WORLD CLASS DREAMS OF HAVING ENOUGH MONEY TO IMPACT THE WORLD
Most people working a 9 to 5 job absolutely hate their job and they cannot wait to retire. Most highly successful people DON’T want to retire because they love what they do so much. Rich people got there because they like to solve problems. There are no externally motivated, they are internally motivated. Most highly rich people love money because with money they can impact the world.
The author also says that ultra rich people are not that much more ambitious than the average person. In fact, the only major difference between the ultra rich and the middle class is the fact that the middle class are not confident in their ability to make it happen.
MIDDLE CLASS ASSOCIATES WITH ANYONE… WORLD CLASS CAREFULLY MONITORS THEIR ASSOCIATIONS
You’ve probably heard that you’re the average of the five person you hang out the most with. Well, this is true. It is true because your life is a reflection of the expectations of your peer group. This is why rich kids often become rich also. You pick up the beliefs and habits of the people you hang out with. This is how it works.
Rich people are aware of that and this is why they like to hang out with other highly successful people. They are aware of that and they know that this could expand their thinking and catapult their income.
MIDDLE CLASS BELIEVES THE RICH ARE SPIRITUALLY BANKRUPT… WORLD CLASS BELIEVES THE RICH ARE AMONG THE MOST SPIRITUAL PEOPLE IN SOCIETY
Again, most people in the middle class perceive rich people as evil for some reason…Even in the movies, rich people are often portrayed as assholes.These limiting believes get passed down generation to generation and this is why people that come from the middle class often stay in the middle class. It’s all about the mindset, it’s all about beliefs.
I really loved this book. The book does a great jobs at describing the differences in beliefs between the middle class and rich people. I only described a few of these in this articles but there are many more in the book. Thee author also tell stories for each one of them. I highly recommend everybody to read this book,
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